Advantages of leasing
Cash flow - Keep working capital in the business
With computer leasing you do not have to pay out a lump sum. You can spread the cost of your equipment and software over its useful working life.
Doesn't affect existing borrowing
Because computer leasing is entirely separate from any bank lending or other credit arrangements you may have it doesn't show up and will not have any influence on any existing or new borrowing. This means that when you lease computer equipment, your overdraft or bank loans are free for use in running your business.
Tax benefits - 100% allowance against pre-tax profits
Computer Leasing is fully allowable against tax. All payments are 100% tax efficient.
Fixed budgeting
No deposits are required and you know exactly what you will be paying per month for the term of the lease. Your lease costs are fixed for the duration of the agreement and as such are unaffected by interest rate changes or other external factors. You can include each year's rentals in your annual budget and remove any guesswork from your financial forecasting.
Upgrade facility
As your business grows, and technology is constantly changing, you can upgrade your equipment on lease at any point during the lease term, and either extend the term and keep the repayments the same or renegotiate a new lease.
